Press release
AI in Smart Cities Market Analysis and Key Drivers Shaping the Evolution of Sustainable Urban Ecosystems
AI in Smart Cities Market
According to the latest research by InsightAce Analytic, the Global AI in Smart Cities Market is valued at US$ 36.9 Bn in 2023, and it is expected to reach US$ 138.8 Bn by 2031, with a CAGR of 18.1% during the forecast period of 2024-2031.
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The integration of Artificial Intelligence (AI) within smart cities aims to improve urban efficiency, promote sustainability, and enhance overall quality of life. The market is experiencing significant growth as AI technologies are increasingly deployed across various smart city domains, including transportation systems, energy management, and public safety. This expansion is further fueled by escalating investments from both public and private sectors. Moreover, AI's incorporation into government-led smart city initiatives is facilitating greater community engagement and elevating the citizen experience.
However, challenges such as data privacy concerns, substantial implementation costs, and complex regulatory environments may impede market advancement. Despite these hurdles, the market is projected to flourish, driven by improvements in sustainable energy utilization, strengthened public safety through advanced surveillance and emergency response capabilities, and the establishment of intelligent transportation networks designed to alleviate traffic congestion. Additionally, AI-enabled innovations in water distribution, waste management, and predictive infrastructure maintenance are expected to play a critical role in fostering more resilient and livable urban settings, thereby supporting continued market growth in the coming years.
List of Prominent Players in the AI in Smart Cities Market:
• IBM Corporation
• Microsoft Corporation
• Google LLC
• Intel Corporation
• Cisco Systems, Inc.
• Siemens AG
• Huawei Technologies Co., Ltd.
• NVIDIA Corporation
• Hitachi Vantara
• NEC Corporation
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Market Dynamics
Drivers:
The increasing demand for Artificial Intelligence (AI) in smart cities is largely driven by the need to address inefficiencies in urban management and declining quality of life. AI technologies enable the automation and real-time analysis of data, empowering cities to optimize resource allocation, reduce traffic congestion, and improve public safety. As urban populations grow, AI supports more informed decision-making for managing infrastructure and public services. Moreover, AI contributes to sustainable urban development by enhancing energy efficiency and waste management practices, meeting the expectations of citizens seeking smarter and more sustainable living environments. Consequently, governments and municipalities are committing substantial investments toward AI-powered smart city solutions to develop more adaptive, resilient, and sustainable urban ecosystems.
Challenges:
The deployment of AI in smart cities faces several significant challenges, primarily related to the high costs of implementation and the complexity of integrating AI systems with existing municipal infrastructure. Financial constraints and the considerable capital required for AI adoption have caused some cities to hesitate in embracing these advanced technologies. Additionally, AI applications require extensive collection and processing of personal data, which raises critical concerns regarding data security and privacy. The absence of standardized regulations and clear policies governing AI use in urban settings further complicates these challenges. Resistance to organizational change and a shortage of qualified professionals capable of managing AI systems are also anticipated to impede market growth in the coming years.
Regional Trends:
The North American market for AI in smart cities is expected to secure a substantial share of global revenue and register a robust compound annual growth rate (CAGR) in the near term. This growth is driven by heightened demand for efficient urban solutions addressing issues such as traffic management and resource optimization, supported by significant governmental investments in smart city initiatives. Europe similarly commands a significant market share, owing to large-scale investments in smart infrastructure, a strong focus on technological innovation, and comprehensive government support for sustainable urban development. The region's emphasis on reducing carbon emissions while improving urban quality of life further accelerates the adoption of AI within smart city projects.
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Recent Developments:
• In July 2024, Oracle opened a second cloud region in Saudi Arabia, Riyadh. This is part of a $1.5 billion plan by Oracle to increase the country's cloud capacity in line with Saudi Vision 2030. Saudi businesses can use Oracle Cloud Infrastructure's fast speed, built-in security, powerful data, distributed cloud, and disaster recovery features to speed up AI creation and make their businesses more resilient.
• In January 2024, IBM and the Department of Science and Technology, Government of Gujarat, signed an MoU to create and promote an AI Cluster using IBM Watson. The goal is to promote new ideas and collaboration among these institutions. This partnership will provide financial institutions with digital assistant solutions, an AI sandbox, help with proof of concept creation, and AI literacy initiatives.
Segmentation of AI in the Smart Cities Market-
AI in the Smart Cities Market- By Component
• Hardware
• Software
• Services (Consulting, Maintenance, Training)
AI in the Smart Cities Market- By Application
• Smart Mobility
• Energy Management
• Healthcare
• Public Safety and Security
• Waste Management
• Environmental Monitoring
• Water Management
• Others
AI in the Smart Cities Market- By Deployment Mode
• Cloud-based
• On-premises
AI in the Smart Cities Market- By End-User
• Government
• Utilities
• Transportation Companies
• Healthcare Providers
• Real Estate Developers
• Others
AI in the Smart Cities Market- By Region
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of the Middle East and Africa
Read Overview Report- https://www.insightaceanalytic.com/report/ai-in-smart-cities-market/2761
About Us:
InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
Contact us:
InsightAce Analytic Pvt. Ltd.
Visit: www.insightaceanalytic.com
Tel : +1 551 226 6109
Asia: +91 79 72967118
info@insightaceanalytic.com
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